-The MKT is in a neutral digest in an underlying positive MKT and will need to generate a positive push today if it is to avoid falling back into a corrective trade.
- On the Sell side REVERSAL strategies off the UP and UT1 will work best as any unsustained positive signal is expected to provide a sharp negative reaction. FADE strategies off the UP are valid but will work better after the 2nd or 3rd press into an area. BREAKOUT strategies below the DP are a lower probability and should be used as a signal for a FADE strategy against the DIR.
- On the Buy side FADE and REVERSAL strategies are recommended off the DP, especially if the previous session low point remains intact. BREAKOUT strategies should hold structure after a resistance breach if they are going to follow through. Any break in momentum and the market will be vulnerable to drop back into a digestive trade.
Today's PRICE MAP Performance for EU
Today in the EURO CURRENCY futures market, we have a perfect example of how JS Services Market Structure Bias [M.S.B.] can be used to successfully navigate a market. The EU had an MC change of -4 to produces an MC Value of +3 for the day. In a NEUTRAL POSITIVE EXTREME market state, our expectation is that in order for the positive sentiment to remain in tact, price must respect the level of Support at the R Level. If that level is broken, our expectation is that the market is transitioning into a Neutral Digestive state. With the R Level at the DP we are looking to accept DP FADE strategies. Since we are still in a NEUTRAL market state, our position management should be tight, and profits should be realized sooner rather than later. Late last night at 11 P.M. we have our first BUY DP FADE opportunity that takes us right up to the DIR just before 2 A.M. Then again around around 3 A.M. we have multiple attempts at the DP which held support, and offered traders another BUY DP FADE trade. Again, this trade made it up to the DIR giving traders a second profitable trade. After profits were realized on the second trade around 4:30 A.M., the market began to build NEGATIVE STRUCTURE by failing to produce higher move highs. Although the market did approach the DP again around 9:30, the BUY DP FADE trade would be suspect because each successive rally has produces lower move highs, indicating weakness on the side of the bulls. As you can see, the rally that occurred after 9:30 failed to reach the DIR and the R Level eventually gave way around 1:30 P.M.
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